How does HDFC Hybrid Equity Fund Offer Benefits of Both Worlds?

The world is a battlefield, where you have to fight to live another day. The only difference between a war and bread earning is that there’s no bloodshed in the latter. However, deep down there’s always a war to fight the negative forces and still grab some more time to reside on this planet. 

Through evolution and with effect of time, humans have devised a uniform method to dwell on earth, i.e. money. While there are uncountable ways of earning money, mutual fund investments in products like HDFC Hybrid Equity Fund is one of the most potent sources. Regarded highly amongst the top mutual funds in India, this fund is a powerhouse of earning wealth and staying well above the danger line. 

The Snapshot  

HDFC Hybrid Equity Fund, earlier known as HDFC Balanced Growth Fund, belongs to the high energy hybrid category of mutual funds. The fund is a composition of both equity and debt, which renders a comprehensive investment option to the masses. It was started about two decades ago in the year 2000, with an aim to provide the investors an option to place their money with high performing companies and grow in tandem with them. By investing in this fund, you get to relish a lot more than just earn good rewards or add cover to your portfolio. 

The Strength

Over the course of 20 years, HDFC Hybrid Equity Fund (G) has accumulated an enormous wealth for itself that stands at Rs. 21, 861 crore, as recorded on November 30, 2018. The reason for its wealth accumulation lies in its outstanding performance in the recent past, a discussion of which will be done later in this article. As a result of its performance, the fund has witnessed an annual increase of 20% in its clientele like clockwork. 

The Fund Management 

HDFC Mutual Fund is considered to be one of the top most brands of asset management in India. It has been honoured with the tag of a star AMC by many industry experts and philosophers, thanks to its ostentatious fund management skills deployed across its schemes. The excellence of the fund management extends to HDFC Hybrid Equity Fund (Growth), where the strategies and policies are decided keeping in mind the best interest of the investors. The fund entails one of the most favourable investment strategies, thus producing attractive results for its stakeholders. Further, it is commendable that a fund size of a gigantic company itself has managed to keep its fund management expenses under control, where the average outlay turns out to be at just 1.98% as recorded on November 30, 2018.

The Investment Philosophy  

To create a versatile product that can suit to a larger crowd, the fund managers at HDFC Hybrid Equity Fund – Regular Plan (G) have evolved a unique investment strategy that contains both equity and debt in a fair ratio. Statistics suggest that the fund has given roughly 70% occupancy to equity and related instruments, while almost 30% goes into debt and the balance is maintained in cash. This unique combination of different kinds of instruments provide dual benefits to the investor; first, they get to enjoy the aggressive performance of the equity instruments and, second, they also remain protected by the market volatility due to the inherent debt component.  

The Performance Graph

HDFC Hybrid Equity Fund (Growth) went on to attract widespread attention due to its marvellous performance in the past. As per the records, the fund has been able to collect returns worth 15.76% since inception. For further clarification of the past results, refer the box below that gives a detailed account on the returns earned at various periods: -

Everybody dreams for a better life, but whether these dreams can be fulfilled in a lifetime stays suspected. While this question may remain in the future’s womb for a while, you can surely cut short the journey of conquering your dreams by investing in HDFC Hybrid Equity Fund. 

The article covers some important information about one of the best performing hybrid funds in India, HDFC Hybrid Equity Fund – Regular Plan (Growth). It explains the background of the fund, along with highlighting the investment strategy, the fund management and the past performance. With proper planning, you can achieve your objectives with the help of this fund.